Why the Aurora Labs (ASX:A3D) share price soared 23% today

The industrial 3D specialist is setting itself up for a big year.

| More on:
a man sits on a rocket propelled office chair and flies high above a city

Image source: Getty Images

The Aurora Labs Ltd (ASX: A3D) share price stormed higher on Wednesday following a significant engagement with a global shipbuilding company.

At the closing bell, Aurora shares ended the day up 23.66% to 11.5 cents.

Aurora engages BAE Systems Maritime Australia

Investors appear upbeat about the company’s future prospects, sending Aurora shares to a 3-month high.

According to its release, Aurora has been selected by BAE Systems Maritime Australia for a trial print project. This involves printing trial marine components for commercial evaluation for the Hunter Class Frigate Program (HCFP).

BAE Systems Maritime Australia’s research and technology group is currently investigating a 3D process known as Additive Manufacturing (AM) for future large scale metal applications.

A specialist in 3D metal printing, Aurora has been identified as a possible supplier of Powder Bed Fusion technology for the HCFP. As such, the company is aiming to prove its technical and commercial know-how in producing 3D stainless steel printed parts.

Investigative test printing will be conducted by both parties to identify locally available AM processes and their benefits. While the component required is traditionally manufactured, Aurora is aiming to optimise the design using its Powder Bed Fusion technology.

BAE Systems Maritime Australia is tasked with delivering 9 frigates to the Royal Australian Navy within the next decade.

Aurora CEO Peter Snowsill was upbeat: 

We are very pleased to be offered the chance to perform test printing for the Hunt Class Frigate Program. Technical validation of its kind is crucial to our communication strategy and allows us to develop and position our technology to satisfy customer specifications.

About the Aurora Labs share price

Over the last 12 months, Aurora shares have travelled around 16% higher. However, year-to-date, the company’s share price is up more than 57%.

Based on today’s price, Aurora has a market capitalisation of roughly $17.5 million, with approximately 152 million shares outstanding.

Should you invest $1,000 in Aurora right now?

Before you consider Aurora, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Aurora wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News